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COUNTRY PROFILE: SAUDI ARABIA€¦ · Q52 Operational Training F 0 Q53 Forward Planning 0 Q54...

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Version 1.3, 25 November 2019 COUNTRY PROFILE: SAUDI ARABIA Saudi Arabia faces critical corruption risk across its defence institutions, with almost no transparency or oversight in operations, finances and procurement. However, it does score well on sanctions for corrupt behaviour, and has some controls over private sector linkages to military and defence. Middle East & North Africa: Regional Issues in Defence Integrity Defence sectors across the Middle East & North Africa (MENA) region continue to face a high risk of corruption. At the same time, protracted armed conflicts in Syria, Libya, and Yemen persist, while public protests against corruption and authoritarianism continue in a number of countries – reflecting an overall context of insecurity and fragility. Although some governments have publically committed to stepping up anti-corruption efforts, there remains a gap between existing legislation and implementation in practice. Military institutions in the region are characterised by a high degree of defence exceptionalism, resulting in a lack of transparency that precludes oversight actors from effectively scrutinising defence budgets and policies at a time when defence spending and arms imports continue to surge. These concerns are further compounded by authoritarian governance systems seen in many MENA countries. Resurgent protests and uprisings in the region after the 2011 Arab Spring demonstrate that corruption is a central and persistent public grievance. Continuing to treat the defence sector as an exception and failing to meet public expectations of transparency and accountability could further fuel public distrust, result in a loss of legitimacy for defence institutions, and facilitate the recruitment efforts of non-state armed groups. It is therefore crucial that governments in the region disclose more information about defence spending and strategy, make decisions that serve the public interest, and rectify loopholes that allow for corruption to thrive, in turn bolstering national security and stability. EGYPT ALGERIA MOROCCO SAUDI ARABIA OMAN TUNISIA LEBANON PALESTINE JORDAN KUWAIT QATAR UAE A Very Low Risk B Low Risk C Moderate Risk D High Risk E Very High Risk F Critical Risk OECD fragile state No Defence Budget as % of GDP* 8.8% Significant defence exporter* No Total armed forces personnel# 252,000 Significant defence importer* Yes UN Convention Against Corruption Ratified in 2013 Volume of arms trade 2015-2018 (US$ mil)* 3, Rank: 57 out of 65 Arms Trade Treaty Not signed Defence Budget (US$ mil)* 67555 *SIPRI, #World Bank Overall Score: F (11) Regional Average: E (17) Middle East & North Africa UAE 10 19 Middle East & North Africa UAE 27 19 Middle East & North Africa UAE 38 30 Middle East & North Africa UAE 15 6 Middle East & North Africa UAE 6 13 Political Risk Financial Risk Personnel Risk Operational Risk Procurement Risk
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Page 1: COUNTRY PROFILE: SAUDI ARABIA€¦ · Q52 Operational Training F 0 Q53 Forward Planning 0 Q54 Corruption Monitoring in Operations F 0 Q55 Controls in Contracting F 0 Q56 Private Military

Version 1.3, 25 November 2019

COUNTRY PROFILE: SAUDI ARABIA

Saudi Arabia faces critical corruption risk across its defence institutions, with almost no transparency or oversight in operations, finances and procurement. However, it does score well on sanctions for corrupt behaviour, and has some controls over private sector linkages to military and defence.

Middle East & North Africa: Regional Issues in Defence Integrity

Defence sectors across the Middle East & North Africa (MENA) region continue to face a high risk of corruption. At the same time, protracted armed conflicts in Syria, Libya, and Yemen persist, while public protests against corruption and authoritarianism continue in a number of countries – reflecting an overall context of insecurity and fragility. Although some governments have publically committed to stepping up anti-corruption efforts, there remains a gap between existing legislation and implementation in practice. Military institutions in the region are characterised by a high degree of defence exceptionalism, resulting in a lack of transparency that precludes oversight actors from effectively scrutinising defence budgets and policies at a time when defence spending and arms imports continue to surge. These concerns are further compounded by authoritarian governance systems seen in many MENA countries. Resurgent protests and uprisings in the region after the 2011 Arab Spring demonstrate that corruption is a central and persistent public grievance. Continuing to treat the defence sector as an exception and failing to meet public expectations of transparency and accountability could further fuel public distrust, result in a loss of legitimacy for defence institutions, and facilitate the recruitment efforts of non-state armed groups. It is therefore crucial that governments in the region disclose more information about defence spending and strategy, make decisions that serve the public interest, and rectify loopholes that allow for corruption to thrive, in turn bolstering national security and stability.

EGYPT

ALGERIA

MOROCCO

SAUDI ARABIAOMAN

TUNISIALEBANON

PALESTINEJORDAN

KUWAIT

QATAR UAE

A Very Low Risk

B Low Risk

C Moderate Risk

D High Risk

E Very High Risk

F Critical Risk

OECD fragile state No Defence Budget as % of GDP* 8.8%

Significant defence exporter* No Total armed forces personnel# 252,000

Significant defence importer* Yes UN Convention Against Corruption Ratified in 2013

Volume of arms trade 2015-2018 (US$ mil)* 3, Rank: 57 out of 65 Arms Trade Treaty Not signed

Defence Budget (US$ mil)* 67555*SIPRI, #World Bank

Overall Score: F (11) Regional Average: E (17)

Middle East & North Africa

UAE10 19

Middle East & North Africa

UAE

27

19

Middle East & North Africa

UAE

3830

Middle East & North Africa

UAE15

6Middle East & North Africa

UAE 613

Political Risk Financial Risk Personnel Risk Operational Risk Procurement Risk

Page 2: COUNTRY PROFILE: SAUDI ARABIA€¦ · Q52 Operational Training F 0 Q53 Forward Planning 0 Q54 Corruption Monitoring in Operations F 0 Q55 Controls in Contracting F 0 Q56 Private Military

Version 1.3, 25 November 2019

Defence & Security

COUNTRY SCORECARD: SAUDI ARABIAOverall Country Score F 11 Critical Risk

Legend Range of Scores Corruption RiskA 83 - 100 Very LowB 67 - 82 LowC 50 - 66 ModerateD 33 - 49 HighE 17 - 32 Very HighF 0 - 16 Critical

KeyNEI - Not enough information to score indicator.NS - Indicator is not scored for any countryNA - Not applicable

www.ti-defence.org/gditwitter.com/ti-defence

Political Risk F 9Q19 Organised Crime Links B 75Q5 Conventions: UNCAC / OECD D 38Q8 Compliance and Ethics Units E 25Q12 Budget Transparency & Detail F 13Q6 Public Debate F 13Q7 Anticorruption Policy F 13Q18 Natural Resources F 10Q2 Defence Committee F 8Q3 Defence Policy Debate F 8Q16 Internal Audit F 6Q1 Legislative Scrutiny F 0Q10 Risk Assessments F 0Q11 Acquisition Planning F 0Q13 Budget Scrutiny F 0Q14 Budget Availability F 0Q15 Defence Income F 0Q17 External Audit F 0Q20 Organised Crime Policing F 0Q21 Intelligence Services Oversight F 0Q22 Intelligence Services Recruitment F 0Q23 Export Controls (ATT) F 0Q4 CSO Engagement F 0Q76 Lobbying F 0Q9 Public Trust in Institutions NS

Financial Risk F 13Q33 Unauthorised Private Enterprise B 75Q31 Beneficial Ownership C 50Q24 Asset Disposal Controls F 8Q29 Off-budget Spending F 8Q25 Asset Disposal Scrutiny F 0Q26 Secret Spending F 0Q27 Legislative Access to Information F 0Q28 Secret Program Auditing F 0Q30 Access to Information F 0Q32 Military-Owned Business Scrutiny F 0Q76 Defence Spending F 0

Personnel Risk E 22Q35 Disciplinary Measures for Personnel C 63Q40 Payment System C 58Q44 Bribery for Preferred Postings C 50Q47 Civilian Code of Conduct D 38Q49 Corruption Prosecutions D 33Q48 Anticorruption Training E 25Q46 Miltary Code of Conduct E 19Q34 Public Commitment to Integrity E 17Q36 Whistleblowing E 17Q50 Facilitation Payments E 17Q39 Pay Rates and Allowances F 13Q42 Objective Promotions F 6Q37 High-risk Positions F 0Q38 Numbers of Personnel F 0

Q41 Objective Appointments F 0Q45 Chains of Command and Payment F 0Q43 Bribery to Avoid Conscription NA

Operational Risk F 5Q51 Military Doctrine E 25Q52 Operational Training F 0Q53 Forward Planning F 0Q54 Corruption Monitoring in Operations F 0Q55 Controls in Contracting F 0Q56 Private Military Contractors NS

Procurement Risk F 6Q68 Complaint Mechanisms D 33Q58 Procurement Cycle E 25Q67 Contract Award / Delivery E 25Q60 Potential Purchases Disclosed F 13Q66 Anti-Collusion Controls F 13Q65 Tender Board Controls F 6Q57 Procurement Legislation F 0Q59 Procurement Oversight Mechanisms F 0Q61 Actual Purchases Disclosed F 0Q62 Business Compliance Standards F 0Q63 Procurement Requirements F 0Q64 Competition in Procurement F 0Q69 Supplier Sanctions F 0Q70 Offset Contracts F 0Q71 Offset Contract Monitoring F 0Q72 Offset Competition F 0Q73 Agents and Intermediaries F 0Q74 Financing Packages F 0Q75 Political Pressure in Acquisitions NS


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